130th Ohio General Assembly
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H. B. No. 554  As Introduced
As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 554


Representative Luckie 

Cosponsors: Representatives Hackett, Domenick, McGregor, Coley, Slesnick, Derickson 



A BILL
To amend section 121.085 and to enact sections 1322.21 to 1322.38 of the Revised Code to establish the Installment Loan Act.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 121.085 be amended and sections 1322.21, 1322.22, 1322.23, 1322.24, 1322.25, 1322.26, 1322.27, 1322.28, 1322.29, 1322.30, 1322.31, 1322.32, 1322.33, 1322.34, 1322.35, 1322.36, 1322.37, and 1322.38 of the Revised Code be enacted to read as follows:
Sec. 121.085. The financial literacy education fund is hereby created in the state treasury. The fund shall consist of funds transferred to it from the consumer finance fund pursuant to section 1321.21 of the Revised Code and the assessments collected by the superintendent of financial institutions pursuant to section 1322.37 of the Revised Code. The fund shall be used to support various adult financial literacy education programs developed or implemented by the director of commerce. The fund shall be administered by the director of commerce who shall adopt rules for the distribution of fund moneys. The director of commerce shall adopt a rule to require that at least one-half of the financial literacy education programs developed or implemented pursuant to this section, and offered to the public, be presented by or available at public community colleges or state institutions throughout the state. The director of commerce shall deliver to the president of the senate, the speaker of the house of representatives, the minority leader of the senate, the minority leader of the house of representatives, and the governor an annual report that includes an outline of each adult financial literacy education program developed or implemented, the number of individuals who were educated by each program, and an accounting for all funds distributed.
Sec. 1322.21.  As used in sections 1322.21 to 1322.38 of the Revised Code:
(A) "Installment loan" means any loan, advance of money, or extension of credit that meets all of the following criteria:
(1) It has a principal amount of at least one hundred dollars but not more than five thousand dollars.
(2) It has a repayment term of not less than ninety days.
(3) It is payable in substantially equal and consecutive installments of principal and interest combined.
(4) It is computed on a pre-computed basis.
(B) "Licensee" means a person to whom the superintendent of financial institutions has issued one or more licenses under sections 1322.21 to 1322.38 of the Revised Code.
(C) "Superintendent of financial institutions" includes the deputy superintendent for consumer finance as provided in section 1181.21 of the Revised Code.
Sec. 1322.22.  Sections 1322.21 to 1322.38 of the Revised Code shall be known as the "installment loan act."
Sec. 1322.23.  (A) On and after January 1, 2011, no person shall engage in the business of making installment loans to a borrower in this state without first having obtained a license from the superintendent of financial institutions under sections 1322.21 to 1322.38 of the Revised Code. An installment loan license shall be required for each location in this state from which the person will engage in the business of making installment loans. If the person intends to make installment loans to borrowers in this state via the telephone, mail, or internet and does not maintain a physical presence in this state, the person shall obtain an installment loan license for the out-of-state location at which the person will maintain the records evidencing the loans.
(B) Sections 1322.21 to 1322.38 of the Revised Code do not apply to any of the following:
(1) Any bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States;
(2) Any licensee under sections 1321.01 to 1321.19 of the Revised Code;
(3) Any licensee under sections 1321.35 to 1321.48 of the Revised Code;
(4) Any registrant under sections 1321.51 to 1321.60 of the Revised Code.
Sec. 1322.24.  (A) Applications for an installment loan license shall be in writing, under oath, and in the form prescribed by the superintendent of financial institutions. The application shall contain the name and address of the applicant; the location or locations where the business of making installment loans is to be conducted or, if the person intends to make installment loans to borrowers in this state via the telephone, mail, or internet and does not maintain a physical presence in this state, the out-of-state location at which the person will maintain the records evidencing the loans; background information concerning the applicant's officers, directors, or other persons controlling the applicant's lending operations; and any further information the superintendent requires.
(B) An application for an original installment loan license shall be accompanied by a nonrefundable application fee of five hundred dollars per location where the business of making installment loans is to be conducted or out-of-state location where records evidencing the loans will be maintained, as applicable.
Sec. 1322.25.  (A) Upon the filing of an application for an original installment loan license, and payment of the application fee required under section 1322.24 of the Revised Code, the superintendent of financial institutions shall investigate the facts concerning the applicant. The superintendent may gather such evidence, including criminal background checks and testimony given under oath, as the superintendent determines necessary to make the findings required by this section.
(B) Upon conclusion of the investigation, the superintendent shall issue an installment loan license if the superintendent finds that the financial responsibility, character, and general fitness of the applicant are such as to warrant the belief that the business of making installment loans will be conducted honestly and fairly in compliance with sections 1322.21 to 1322.38 of the Revised Code.
(C) The superintendent shall either approve or deny an application within sixty days after the date the superintendent deems the application complete. An application shall be deemed approved if it is not denied within that sixty-day period. If the superintendent finds that the applicant does not meet the requirements of division (B) of this section, the superintendent shall issue an order denying the application and giving the applicant an opportunity for a hearing on the denial in accordance with Chapter 119. of the Revised Code.
Sec. 1322.26.  (A) An installment loan license issued under section 1322.25 of the Revised Code may be renewed on or before the thirty-first day of December of the calendar year in which the original license was issued, and on or before the thirty-first day of December of each calendar year thereafter, if the superintendent of financial institutions finds that both of the following conditions are met:
(1) The renewal application is accompanied by a nonrefundable application fee of two hundred fifty dollars per location where the business of making installment loans is to be conducted or out-of-state location where records evidencing the loans will be maintained, as applicable.
(2) The applicant meets the requirements of division (B) of section 1322.25 of the Revised Code.
(B) The superintendent shall either approve or deny a renewal application within sixty days after the date the superintendent deems the application complete. An application shall be deemed approved if it is not denied within that sixty-day period. If the superintendent finds that the applicant does not meet the requirements of division (A) of this section, the superintendent shall issue an order denying the application and giving the applicant an opportunity for a hearing on the denial in accordance with Chapter 119. of the Revised Code.
Sec. 1322.27.  (A) Each installment loan license shall be kept conspicuously posted in the place of business of the licensee and is not transferable or assignable.
(B) No change in the place of business of a licensee shall be permitted under the same license. When a licensee wishes to change the licensee's place of business, the licensee shall give at least thirty days' advance notice thereof to the division of financial institutions. Within thirty days after receipt of that notice, the superintendent of financial institutions shall issue a license for the new location, unless the superintendent finds the licensee no longer meets the necessary requirements.
(C) No change in the control of a licensee shall be permitted under the same license. As used in this division, "change in the control" means the sale or transfer of more than twenty-five per cent of the licensee's ownership interest.
Sec. 1322.28.  A licensee shall disclose in any printed, televised, broadcast, electronically transmitted, or published advertising relating to the licensee's services, including on any electronic site accessible through the internet, the number designated on the installment loan license issued to the licensee.
Sec. 1322.29.  (A) In connection with an installment loan, a licensee may charge, collect, and receive interest or finance charges at any rate or rates agreed upon or consented to by the parties to the loan contract but not exceeding twenty-five per cent per year on the unpaid principal balances of the loan.
(B) In addition to the interest and charges authorized under division (A) of this section, a licensee may charge, collect, and receive, as interest, a loan origination fee and credit report fee or, if the installment loan is a refinancing of a previous installment loan made by the licensee, a renewal fee. Such fees shall not, however, exceed the maximum fee amounts established by the superintendent of financial institutions under section 1322.38 of the Revised Code or be included in the computation of the twenty-five per cent limitation set forth in division (A) of this section.
(C)(1) A licensee may accept as security for an installment loan any of the following types of insurance:
(a) Insurance on tangible property against substantial risks or loss;
(b) Insurance on the life and health of the borrower;
(c) Insurance against an accident of the borrower.
(2) The premium the borrower pays, or agrees to pay, for any such insurance shall not constitute interest for purposes of division (A) of this section. An insurance company may pay to the party writing the insurance policy a commission that is reasonable in relation to the commission the insurance company pays for a comparable transaction not involving credit.
(D) A licensee may charge, collect, and receive an amount equal to the attorney's fees the licensee incurs in the process of collecting on an installment loan after default, provided the amount does not exceed ten per cent of the original principal amount of the loan.
(E) A licensee may place a lien on the borrower's personal property as security for a loan but shall not place a lien on the borrower's real property except when the lien is created upon the filing or recording of a certificate of judgment.
Sec. 1322.30.  (A) An installment loan made under sections 1322.21 to 1322.38 of the Revised Code shall be made pursuant to a written loan contract that sets forth the terms and conditions of the loan. The loan contract shall disclose in a clear and concise manner all of the following:
(1) The date and amount of the loan;
(2) The cost of credit, as required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;
(3) A payment schedule;
(4) The type of security required for the loan;
(5) The licensee's name and address;
(6) The amount of each type of insurance carried and the premiums paid for each type;
(7) The amount of interest, fees, and other charges, including any default penalties;
(8) A statement immediately above the borrower's signature, printed in boldface type of the minimum size of twelve points, as follows: "WARNING: THE COST OF THIS INSTALLMENT LOAN MAY BE HIGHER THAN THE COST OF CREDIT YOU MAY BE ABLE TO OBTAIN FROM ANOTHER LENDER, SUCH AS A BANK OR CREDIT UNION, OR FROM FRIENDS, FAMILY MEMBERS, OR NON-PROFIT ORGANIZATIONS. BE SURE TO CONSIDER ALL YOUR BORROWING OPTIONS BEFORE SIGNING THIS AGREEMENT."
(9) A statement, printed in boldface type of the minimum size of twelve points, that informs the borrower of the phone number or the mail or web site address at which the borrower may submit complaints regarding the loan or the licensee to the superintendent of financial institutions. If the borrower submits such a complaint, the licensee shall promptly and fully cooperate with the superintendent's investigation and resolution of the complaint.
(B) A borrower, at the borrower's election, may pay an installment loan with any one or more of the following payment methods:
(1) Cash or a cash equivalent;
(2) Personal check;
(3) Automated clearinghouse (ACH) entry, provided the licensee does not condition its extension of credit on the borrower's agreement to pay the loan with recurring ACH entries;
(4) Debit card, provided that the licensee maintains the equipment necessary to accept such payments and does not condition its extension of credit on the borrower's agreement to pay the loan with recurring debit card payments.
(C) A borrower may rescind an installment loan for any reason by returning the loan proceeds to the licensee in the form of cash not later than the close-of-business on the business day immediately following the date the borrower obtained the loan. A licensee shall not collect any interest, fees, or other charges on a rescinded loan.
Sec. 1322.31.  Prior to consummating an installment loan, a licensee shall deliver to the prospective borrower a document in substantially the following form:
"BORROWER'S BILL OF RIGHTS
1. RIGHT TO INTEREST RATE LIMIT. The lender may not collect interest at a rate greater than permitted by law.
2. RIGHT TO RESPONSIBLE LENDING PRACTICES. This loan is an installment loan that you must pay according to the payment schedule outlined in the loan contract, which schedule must be at least 90 days in duration under state law. Additionally, to ensure that you have the ability to pay this loan in full without default or refinancing, the monthly payment you owe on the loan may not exceed twenty-five per cent of your monthly gross income. Finally, the lender may not allow you to refinance or rollover this loan, and may not make a new installment loan to you on the same day that you pay this loan.
3. RIGHT TO FREE FINANCIAL LITERACY EDUCATION PROGRAMS. State law requires the lender to contribute part of its revenue from this loan to the state's Financial Literacy Education Fund. The lender may be periodically required by the state to provide point-of-sale notice of the location, date, and time of financial literacy education programs that are supported by this state fund.
4. RIGHT TO FREE RESCISSION PERIOD. You may rescind this loan for any reason by returning the loan proceeds to the lender in the form of cash not later than the close-of-business on the business day immediately following the date you obtained the loan. The lender may not collect any interest, fees, or other charges on a rescinded loan.
5. RIGHT TO FAIR COLLECTION PRACTICES. If you default on this loan, the lender must act fairly and professionally when collecting the loan.
6. RIGHT TO FULL DISCLOSURE OF LOAN TERMS. The loan contract must provide full disclosure of all important loan terms, including the finance charges and interest rate. Additionally, the loan contract must contain a written warning, immediately above your signature, advising you that the cost of this loan may be higher than the cost of credit you may be able to obtain elsewhere.
7. RIGHT TO TRUTHFUL ADVERTISING. The lender may not make any false or misleading statement regarding the rates, terms, or conditions of an installment loan in its advertisements. Additionally, the lender must list, in all of its advertisements, the number designated on the installment loan license issued to the lender.
8. RIGHT TO PREPAYMENT REBATE. You may prepay this loan at any time without a penalty. If you choose to prepay this loan, the lender may charge interest only for the time that the loan principal was actually outstanding.
9. RIGHT TO COMPLAINT RESOLUTION. The loan contract must provide the phone number or mail or website address at which the borrower may submit complaints regarding the loan or the lender to the state Superintendent of Financial Institutions. If you submit such a complaint, the lender must promptly and fully cooperate with the Superintendent's investigation and resolution of the complaint.
10. RIGHT TO CONVENIENT PAYMENT METHODS. You may choose to pay this loan in a manner that is convenient to you, including by cash, check, or electronic funds transfer."
Sec. 1322.32.  No licensee shall do any of the following:
(A) Make an installment loan if, at the time the loan was consummated, the borrower's total monthly payment owed on the loan exceeds twenty-five per cent of the borrower's monthly gross income;
(B) Make an installment loan to a borrower if an installment loan between that borrower and the licensee was terminated on the same business day;
(C) Divide a borrower's loan request into separate loans, each consummated within a seven-day period, if the purpose or effect of that practice would be to charge, collect, or receive more interest, fees, or other charges than the licensee would have been permitted to charge, collect, or receive if the licensee had made a single installment loan to the borrower;
(D) Charge, collect, or receive any interest, fees, or charges in connection with an installment loan other than as authorized under sections 1322.21 to 1322.38 of the Revised Code, except for the following:
(1) The amount of lawful premiums actually paid for insurance against the risk of nonrecording or releasing any instrument securing the loan;
(2) The actual and reasonable expenses of repossessing, storing, and selling any collateral pledged as security for a loan in default;
(3) The court costs awarded by a court in connection with the licensee's collection of a loan in default.
(E) Charge a fee for cashing a proceeds check or money order disbursed to fund a loan made by the licensee or an affiliate of the licensee;
(F) Impose a prepayment penalty. If a borrower prepays an installment loan, the licensee shall refund or credit the borrower with the aggregate of all applicable charges for all fully unexpired installment periods, as originally scheduled, that follow the date of prepayment. If the prepayment is made other than on a scheduled installment due date, the nearest scheduled installment due date shall be used for purposes of that computation.
(G) Advertise, display, distribute, or broadcast any false, misleading, or deceptive statement or representation regarding the rates, terms, or conditions of an installment loan;
(H) Report the repayment performance of an installment loan to any consumer reporting agency, as that term is defined in section 1322.33 of the Revised Code, unless the agency that receives the information records it as a tier 1 credit event.
Sec. 1322.33. (A) As used in this section:
(1) "Debt collector" means a licensee, officer, employee, or agent of a licensee, or any person acting as a debt collector for a licensee, or any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt resulting from an installment loan made by a licensee. "Debt collector" does not include an employee of the licensee when making courtesy calls to remind borrowers of upcoming installment due dates.
(2) "Borrower" means a person who has an outstanding or delinquent installment loan. For the purpose of this section, the term "borrower" includes the borrower's spouse, parent, if the borrower is a minor, guardian, executor, or administrator.
(3) "Communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium.
(4) "Consumer reporting agency" means any person that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties and that uses any means or facility for the purpose of preparing or furnishing consumer reports.
(5) "Location information" means a consumer's residence, telephone number, or place of employment.
(B) When communicating with any person other than the borrower for the purpose of acquiring location information about the borrower, the debt collector shall identify self, state that the purpose for the communication is to confirm or correct location information concerning a person, and, only if expressly requested, identify the debt collector's employer. The debt collector shall not do any of the following:
(1) State that the person for whom location information is being sought is a borrower or owes any debt;
(2) Communicate by post card;
(3) Use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the communication relates to the collection of a debt;
(4) After the debt collector knows the borrower is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to communication from the debt collector.
(C) A debt collector, without the prior consent of the borrower given directly to the debt collector or without the express permission of a court of competent jurisdiction, may not communicate with a borrower in connection with the collection of any debt:
(1) At any unusual time or place or a time or place known or which should be known to be inconvenient to the borrower. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a borrower is after eight a.m. eastern standard time and before nine p.m. eastern standard time at the borrower's location.
(2) If the debt collector knows the borrower is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the borrower;
(3) At the borrower's place of employment if the debt collector knows or has reason to know that the borrower's employer prohibits the borrower from receiving such communication.
(D) A debt collector, when communicating with a third party without the prior consent of the borrower given directly to the debt collector, or without the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, may not communicate, in connection with the collection of any debt, with any person other than the borrower, the borrower's attorney, a consumer reporting agency if otherwise permitted by law, the attorney of the debt collector, or a person from whom the debt collector seeks to acquire location information about the borrower.
(E) A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt, including, but not limited to, any of the following:
(1) Using or threatening to use violence or other criminal means to harm the physical person, reputation, or property of any person;
(2) Using obscene or profane language or language the natural consequence of which is to abuse the hearer or reader;
(3) Publication of a list of borrowers who allegedly refuse to pay debts, except to a consumer-reporting agency;
(4) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(F) A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt, including, but not limited to, any of the following:
(1) Falsely representing or implying that the debt collector is vouched for, bonded by, or affiliated with the United States or any state, including the use of any badge, uniform, or facsimile thereof;
(2) Falsely representing the character, amount, or legal status of any debt, or any services rendered, or compensation which may be lawfully received by any debt collector for the collection of a debt;
(3) Falsely representing or implying that any individual is an attorney or that any communication is from an attorney;
(4) Representing or implying that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector intends to take such action;
(5) Threatening to take any action that cannot legally be taken or that is not intended to be taken;
(6) Falsely representing or implying that a sale, referral, or other transfer of any interest in a debt shall cause the borrower to lose any claim or defense to payment of the debt;
(7) Falsely representing or implying that the borrower committed any crime or other conduct in order to disgrace the borrower;
(8) Communicating or threatening to communicate to any person credit information that is known or that should be known to be false, including the failure to communicate that a disputed debt is disputed;
(9) Using or distributing any written communication that simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state, or that creates a false impression as to its source, authorization, or approval;
(10) Using any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a borrower;
(11) Failing to disclose in the initial written communication with the borrower that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent written communications that the communication is from a debt collector, except that division (F)(11) of this section shall not apply to a formal pleading made in connection with a legal action;
(12) Falsely representing or implying that accounts have been turned over to third parties for value;
(13) Falsely representing or implying that documents are legal process;
(14) Using any business, company, or organization name other than the true name of the debt collector's business, company, or organization. Nothing in division (F)(14) of this section prohibits the use of trade names or acronyms the business, company, or organization is known by.
(15) Falsely representing or implying that documents are not legal process forms or do not require action by the consumer;
(16) Falsely representing or implying that a debt collector operates or is employed by a consumer reporting agency.
(G) A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt, including, but not limited to, any of the following:
(1) Collecting any amount, including any interest, fee, charge, or expense incidental to the principal obligation, unless the amount is expressly authorized by the agreement creating the debt or permitted by law;
(2) Soliciting any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution;
(3) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on the check or instrument;
(4) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. The charges include, but are not limited to, collect telephone calls and telegram fees. Division (G)(4) of this section does not apply to any form of communication that is authorized by the borrower for the express purpose of contacting the borrower about the loan.
(5) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if there is no present right to possession of the property claimed as collateral through an enforceable security interest, there is no present intention to take possession of the property, or the property is exempt by law from dispossession or disablement;
(6) Communicating with a borrower regarding a debt by post card;
(7) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a borrower by use of the mails or by telegram, except that a debt collector may use the collector's business name if the name does not indicate that the collector is in the debt collection business. Nothing in division (G)(7) of this section prohibits the use of trade names or acronyms the business is known by.
(8) Designing, compiling, and furnishing any form knowing that the form would be used to create the false belief in a borrower that a person other than the licensee is participating in the collection of or in an attempt to collect a debt the borrower allegedly owes the creditor, when in fact the person is not so participating.
Sec. 1322.34.  (A) Each licensee shall keep and use in the licensee's business such books, accounts, and records as will enable the superintendent of financial institutions to determine whether the licensee is complying with sections 1322.21 to 1322.38 of the Revised Code. Each licensee shall preserve those books, accounts, and records for at least four years after making the final entry on any installment loan recorded therein.
(B) As required by the superintendent, each licensee shall file an annual report with the division of financial institutions detailing the licensee's origination and collection of installment loans during the preceding year.
Sec. 1322.35.  (A) As often as the superintendent of financial institutions considers it necessary, the superintendent, or the superintendent's designee, may examine the records of any of the following:
(1) Any licensee;
(2) Any person who advertises, solicits, or makes installment loans in this state;
(3) Any person whom the superintendent has reason to believe is violating or is about to violate any provision of sections 1322.21 to 1322.38 of the Revised Code.
(B) In conducting examinations pursuant to this section, the superintendent may subpoena witnesses, books, accounts, papers, and records; administer oaths; hold hearings; and take testimony under oath.
(C) The cost of any examination, investigation, or hearing authorized under sections 1322.21 to 1322.38 of the Revised Code may, in the superintendent's discretion, be charged to the licensee or other person examined or investigated. Examinations, investigations, or hearings may be conducted at the department of commerce or, in the discretion of the superintendent, in the county in which the business of the licensee is located or in which the person required to have an installment loan license is engaging in the business of making installment loans.
Sec. 1322.36.  (A) If the superintendent of financial institutions determines that a person is engaged in or is believed to be engaged in activities that may constitute a violation of or failure to comply with any provision of sections 1322.21 to 1322.38 of the Revised Code or any rule adopted thereunder, the superintendent, after notice and a hearing conducted in accordance with Chapter 119. of the Revised Code, may issue a cease and desist order. Such an order shall be enforceable in the court of common pleas. The remedy provided for in this division does not preclude the superintendent from pursuing any other remedy available by law.
(B) After notice and opportunity for a hearing conducted in accordance with Chapter 119. of the Revised Code, the superintendent may suspend, revoke, or refuse to issue or renew an installment loan license if the superintendent finds a violation of or failure to comply with any provision of sections 1322.21 to 1322.38 of the Revised Code or the rules adopted thereunder or with any terms of a cease and desist order issued by the superintendent. Upon the appeal of an order suspending or revoking a license, the court may tax court costs to the losing party.
(C) A suspension, revocation, relinquishment, or expiration of an installment loan license shall not affect the legality of any pre-existing installment loan contract or prevent the enforcement of those contracts.
Sec. 1322.37.  (A) The superintendent of financial institutions shall assess each licensee, at least once every three months, an amount equal to one per cent of the installment loan revenue the licensee generated during that period. The superintendent shall deposit those assessments into the state treasury to the credit of the financial literacy education fund created in section 121.085 of the Revised Code.
(B) The superintendent may require each licensee to make available to its customers, in a form prescribed by the superintendent, information as to the location, date, and time of any financial literacy education programs that are supported by the financial literacy education fund.
Sec. 1322.38.  (A) The superintendent of financial institutions shall, in accordance with Chapter 119. of the Revised Code, adopt rules that the superintendent considers necessary for the implementation of sections 1322.21 to 1322.38 of the Revised Code, including rules that establish the maximum loan origination fee, credit report fee, and renewal fee that may be charged by licensees under division (B) of section 1322.29 of the Revised Code. The maximum fee amounts so established shall permit a licensee to both defray its reasonable operating costs and earn a profit that is commensurate with the profit margins earned by other financial institutions making consumer loans to residents of this state. To determine the maximum fee amounts, the superintendent shall appoint and consult with a five-member advisory committee consisting of persons with banking-related experience. The committee shall be appointed not later than January 1, 2011.
(B) In addition to imposing the assessment required by section 1322.37 of the Revised Code, the superintendent may advertise, sponsor, or promote activities or events designed to support the financial literacy education of consumers who obtain installment loans made under sections 1322.21 to 1322.38 of the Revised Code.
Section 2.  That existing section 121.085 of the Revised Code is hereby repealed.
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